UPDATE 1-Daiwa Securities to buy stake in DaVinci REIT - Nikkei

June 17 (Reuters) - Japan's Daiwa Securities Group Inc (8601.T) said it would invest 10 billion yen ($103.7 million) in a real estate investment fund affiliated with DaVinci Holdings KK (4314.OJ), marking it the first domestic brokerage to enter the realty market, the Nikkei business daily said.

The second-largest broker in Japan will take a 13 percent stake in DA Office Investment Corp (8976.T) through a private placement of new shares, it reported.

Daiwa will also acquire all the shares in the firm that manages this REIT, DaVinci Select KK, from DaVinci Holdings for several billion yen, the report said without naming the source.

Once the deal is sealed, DA Office Investment will tap Daiwa's strong credit standing to negotiate loan refinancing with financial institutions and strengthen its finances, the Nikkei said.

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